Today's Mortgage Refinance Rates -- July 15, 2021: Rates Fall on the 15-Year Loan

Own a home and thinking about refinancing? Check out today's average rates to see if it makes sense.

On July 15, 2021, mortgage refinance rates are unchanged for the 30-year refinance loan, up for the 20-year, and down for the 15-year. Your rate will depend on your financial situation, so it pays to compare personalized rates from several lenders to see what a new refinance loan would cost you.

Here's how average mortgage refinance rates are trending today:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage refinance rates

The average 30-year mortgage refinance loan rate today is 3.200, unchanged from yesterday's average. If you refinance at today's average rate, your monthly principal and interest payment would be $432 per $100,000 borrowed. Over the life of the refinance loan, your total interest costs would add up to $55,688 per $100,000 borrowed.

20-year mortgage refinance rates

The average 20-year mortgage refinance loan rate today is 2.949%, up 0.005% from yesterday's average of 2.944%. Refinancing at today's average rate would leave you with a monthly principal and interest payment of $552 per $100,000 in mortgage debt. For each $100,000 you refinance at today's average rate, total interest costs would add up to $32,492.

A shorter payoff time means higher monthly payments, but lower total costs. That's why the 20-year loan costs so much more per month than the 30-year loan even though the rate is lower. You can see there's considerable savings over time, though.

15-year mortgage refinance rates

The average 15-year mortgage refinance loan rate today is 2.520%, down 0.003% from yesterday's average of 2.523%. A loan at today's average rate would cost you $668 per month in principal and interest for each $100,000 you refinance. During your entire loan repayment period, you'd pay total interest costs of $20,192 per $100,000 refinanced.

Since a 15-year refinance loan has a very short payoff time, the monthly payments will be very high but total costs will be low. Consider whether you prioritize a low monthly payment, and the flexibility that provides, or whether you'd rather pay the least amount of interest after refinancing.

Should you refinance your mortgage right now?

Refinancing your mortgage can be a smart financial decision if you're able to reduce your interest rate and lower your monthly payments by securing a new home loan. However, there are a few key things to think about before you refinance.

First, if you extend your loan repayment term, you could end up paying higher total interest costs over time than with your existing mortgage. This can occur even if you qualify for a lower interest rate since you'd be paying interest over a longer time. You can avoid this issue by choosing a refinance loan with a shorter repayment term. Or you may decide you're willing to pay more interest over the life of your loan in exchange for a reduced monthly payment.

Second, you will have to consider closing costs, which are the upfront fees you'll be charged when you refinance your mortgage. The Ascent's research revealed that closing costs on a refinance loan for a median value home total anywhere from $5,000 to $12,500. However, your closing fees will depend on the amount of your home loan, your location, and your lender.

You should eventually make up for these closing costs due to your lower monthly payments -- but that can take time. If you save $200 per month by refinancing and pay $6,000 in closing costs, you would take 2.5 years to break even. It's important to do the math and consider whether you'll stay in your home long enough for refinancing to pay off.

In general, it is a good idea to refinance if you don't plan to move in the next few years and you can reduce your mortgage interest rate by 1% or more. With mortgage refinance rates near record lows, many borrowers will find it's a good time to refinance. Compare rates from the best mortgage refinance lenders to get some personalized offers and decide whether securing a new home loan now is right for you.